The IRS today issued a release as a reminder that certain individual taxpayer identification numbers (ITINs) are set to expire at the end of 2020.
The IRS is completing its process for expiration of ITINs assigned before 2013, and is encouraging taxpayers to submit their renewal applications early to avoid refund delays next year.
As explained in today’s IRS release—IR-2020-181—under the “Protecting Americans from Tax Hikes Act” (PATH Act), ITINs that have not been used on a federal tax return at least once in the last three consecutive years and those issued before 2013 will expire.
ITINs are used by people who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. Taxpayers whose ITIN is expiring and who expect to have a filing requirement in 2021 must submit an ITIN renewal application. Others do not need to take any action.
Taxpayers will need to take action to renew the ITIN if it will be included on a U.S. tax return filed in 2021. Taxpayers who receive an IRS notice after acting to renew their ITIN do not need to take further action unless another family member is affected.
To renew an ITIN, a taxpayer must complete Form W-7 and submit all required documentation. Taxpayers submitting a Form W-7 to renew their ITIN are not required to attach a federal tax return. However, taxpayers must still note a reason for needing an ITIN on the Form W-7.
Spouses and dependents residing outside of the U.S. only need to renew their ITIN if filing an individual tax return, or if they qualify for an allowable tax benefit (e.g., a dependent parent who qualifies the primary taxpayer to claim head of household filing status). In these instances, a federal return must be attached to the Form W-7 renewal application.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.